Scotto Designs Has the Following Standards to Make One Scarf

question 101

Multiple Choice

Scotto Designs has the following standards to make one scarf: $\begin{array}{lrr} & {\text { Standard Quantity }} & \text { Standard Price } \\\text { Direct materials }& 1.2 \text { yards per scarf } & \$ 4.70 \text { per yard } \\\text { Direct labor } & 0.15 \text { hours per scarf } & \$ 11.00 \text { per hour }\end{array}$ The company used 985 yards of material in order to make 800 scarves in April.The company purchased 1,100 yards at $4.60 per yard.How much is the direct materials price variance?

• A)$110 favorable
• B)$118 unfavorable
• C)$8 unfavorable
• D)$98.50 favorable

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